20% minimum wage rise proposed for Jakarta

20% minimum wage rise proposed for Jakarta

JAKARTA (JP): The All Indonesia Workers' Union (SPSI) has proposed an increase of 20 percent in the minimum wage for Jakarta and its surrounding areas.

"We have proposed a minimum wage increase from Rp 4,600 ($2) to Rp 5,400 for Jakarta, Bogor, Tangerang and Bekasi areas," Bomer Pasaribu, SPSI chairman, told reporters at his office here yesterday.

The proposal also includes other provinces and will take effect in April after the manpower minister approves it, he said.

Bomer said the minimum wage increase for Bogor, Tangerang and Bekasi towns was based on the growing cost of living in the capital city of Jakarta.

Since Bogor, Tangerang and Bekasi have the same standard of living as the capital, the same minimum wage is relevant, he said. In addition, Bomer said, many workers here come from the three towns.

"Jakarta's 12.3 million population at day time drops to 9.9 million at night because 2.4 million workers live in Bogor, Tangerang and Bekasi," he said.

This year's increase was no longer based on the workers' physical needs but their growing aspirations, he said.

"The people do not only need food, clothes and shelter but also social contact, entertainment, et cetera," he said.

According to him, the country's minimum wage in general has surpassed the physical need by up to 108 percent but only 88 percent of the life demand.

"We propose the increase, while still taking into consideration the survival of the companies," he said.

He added that the salary increase should be balanced with the company's productivity so that the employers can prosper too.

The union has urged its 27 regional units throughout the country to submit proposals on the increase.

Based on the proposals received from the 27 provinces, the union has urged the Ministry of Manpower to declare Batam the area with the highest minimum wage, while Yogyakarta and East Nusa Tenggara have the lowest.

Current minimum wages put Irian Jaya at the top of the list with Rp 4,750 and Central Sulawesi at the bottom with Rp 2,800.

The national minimum wages will be officially announced by the manpower minister next month after consultation with the national council on wage affairs, which consists of representatives from companies, workers and officials of some ministries.(030)